Ember Fund Review: Simplified Investing in Cryptocurrencies

Ember simplifies the process of investing in cryptocurrencies. It does this by allowing you to use a mobile app to quickly invest in managed cryptocurrency portfolios with a single tap. While there are fees for managed portfolios, hands-off investors will appreciate the ease of investing with Ember as well as the option to access a managed crypto portfolio without having to qualify as an accredited investor. This Ember Fund review will tell you everything you need to know about using the platform and whether it's worth investing.

Ember Fund is an investment app that allows you to quickly and easily invest in managed cryptocurrency funds. You can buy into a fund with as little as $10. And you can choose between several different funds with their own unique investing goals.

How does Ember Fund work? 

Ember Fund provides the option to invest in managed funds that provide exposure to cryptocurrency. These include:

• The Metaverse: The Megaverse Index (MVI) is made up of 16 top Metaverse projects. The fund's goal is to profit from the shift to virtual sports, entertainment, and business operations. 
• The Ember DeFi: This is an index fund tracking the performance of the top tokens within the decentralized finance space. 
• Bitcoin Defense: This fund aims to reduce exposure to Bitcoin during downturns and to maximize exposure to the upside of cryptocurrency trading. It's a quantitative index that measures long-term trends in the market to determine when to move money into and out of Bitcoin. 

Investors can buy into each fund with one tap and with as little as $10 once they've funded their Ember account. 

Who can invest with Ember Fund?

You can invest with EmberFund if you are able to deposit Bitcoin into your account either from an external wallet, by linking your Coinbase account, or by buying Bitcoin from a partner using a bank account or a credit or debit account.  You do not need to be based in the United States to invest.

Some funds have produced returns far above the stock market

Not all funds offered by Ember have performed well, but several including the Metaverse Fund and the Bitcoin Defense fund have provided impressive results. 

The Metaverse fund has produced a 41.9% all-time ROI, while the Bitcoin Defense fund has produced a 152.8% all-time return. These gains are impressive, and it's not surprising that some user reviews praise the money they've made with Ember. 

You don't need much money to get started

It's possible to begin investing with Ember even if you have as little as $10. Many competitors have a higher investment minimum if you're interested in a managed cryptocurrency portfolio. 

You do not have to be an accredited investor

To become an accredited investor, you'd need a very high income -- $200,000 for individuals or $300,000 as a married couple -- or a high net worth exceeding $1 million not including a primary home. It's obviously difficult for most people to meet these requirements. Many actively managed cryptocurrency investment platforms require you to do so. Ember doesn't, so more people can take advantage of its services.

Make funding your account easier 

Ember aims to simplify crypto investing, but requires you to fund your account with Bitcoin. For those who don't know how to buy or transfer Bitcoin, this can be a huge barrier to entry that prevents them from opening an account at all. 

Reduce management fees

Several of the funds available through Ember charge high management fees. Quant and Ember DeFi portfolios both charge a 3% fee and Ember's MetaVerse index charges a 2.5% annual management fee. These fees can reduce effective returns, leaving you with less money in the end. 

The good news is, Ember's yield fund is fee-free so could be a more affordable option for those who want to keep their investment cost as low as possible. 

Provide more consistent customer service 

Although Ember received 4.5 stars on the iOS Store, some users on Reddit and Quora report problems including difficulty transferring money and problems with the algorithm powering various funds that Ember offers.

While it is possible to make money investing with Ember, the performance of the funds Ember offers is mixed. 

• The Metaverse fund's all-time ROI is 41.9% 
• The Bitcoin Defense fund's all-time ROI is 152.8%.
• The Ember DeFi fund's all-time ROI is -61.40%

As a result, your ability to make a profit depends on which fund you selected and when you bought into it.

How do I make money with Ember Fund?

You can make money with Ember Fund by investing money into one of several managed cryptocurrency funds the trading platform offers. If the underlying assets in the fund perform well -- and the algorithm used to rebalance your portfolio works effectively -- then you can make a profit. But if the assets don't perform well, you could lose what you invested. 

It is also possible to mine Bitcoin in Ember. This can help you to make money as you acquire Bitcoins. 

How do I cash out with Ember Fund? 

To cash out, you start by clicking "Sell Portfolio" in the settings page in the Ember app. When your portfolio is sold, you will receive Bitcoin into your Ember wallet. You can then send the Bitcoin to any exchange in order to cash out the coins for fiat currency. 

Ember Fund vs traditional investing

The Metaverse fund provided investors with a 41.9% all-time ROI and the Bitcoin Defense fund provided a 152.8% all-time return. Both of these are well above the average 10% annual returns produced by the S&P 500 index. The S&P 500 is a financial index made up of the 500 largest U.S. companies, and it's widely seen as a measure of overall market performance. 

However, the Ember DeFi fund has produced a -61.40% all-time return which obviously isn't impressive. 

Ultimately, there is more risk in investing in managed cryptocurrency funds and it's important to consider the potential downside as well as the potential for higher returns.

Ember Fund has received mixed reviews from users. 

Reddit users describe problems with the algorithms that are used to determine when to shift portfolio funds as well as unexpected fees and issues with investing money into the funds. And some users responding to Quora questions also report that the fund has been slow to automatically rebalance as promised. 

However, others indicate they had a positive experience with the app, and it does receive 4.5 stars on the iOS Store. One user praised the customer service provided, while others said investing in the fund helped them successfully turn a profit.

Ember Fund offers a choice of investment options, and its simplicity is attractive once you've funded your account. However, the performance of the funds offered is mixed and the requirement to use Bitcoin to fund your account creates an additional hurdle that beginning cryptocurrency investors may not appreciate.